The Fight Over This Biotech’s Cash: Elan Corporation, plc (ADR) (ELN)

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If you’re going to own Elan, you have to trust management to make good choices with the cash, a track record that management doesn’t have.

Rather than a share buyback, investors would be better off with a $1 billion dividend; that would be a hefty once-time 15% payment. Or better yet, return all the cash and become a shell company that distributes the Tysabri royalties as dividends like PDL BioPharma Inc. (NASDAQ:PDLI).

The article The Fight Over This Biotech’s Cash originally appeared on Fool.com and is written by Brian Orelli.

Fool contributor Brian Orelli has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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